Miriam Caldwell has been writing about budgeting and personal finance basics since 2005. She teaches writing as an online instructor with Brigham Young University-Idaho, and is also a teacher for public school students in Cary, North Carolina.
It is important to find new ways tosave money regularly. If you make savings a regular part of your everyday life, you will find yourself in a much better position later on in life. You will be able to retire comfortably, buy a new home when you are ready, and deal with any emergency that comes your way. If you can make saving money a habit, it is much easier to make it a priority. Here are seven easy ways to save.
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Take Advantage of Your Employer's Matching Contributions
Take advantage of your employer's match to your 401K. This is money that you can have without any additional work on your part. Most employers match up to about three percent, though several will go higher. To take advantage of the match, you need to sign up to contribute that percentage of your income to retirement each month.
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Set Up an Automatic Transfer
If transferring the moneyto your savings account is the problem, then you should consider having it auto-drafted from your account each month. You can visit your bank to set up an automatic monthly transfer. Many banks allow you to do this online as well.
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Take Advantage of Direct Deposit
You may consider having a portion your savings account direct deposited into your savings account, as well. If your employer allows you this option,take advantage of it. If you never see the money, you are less likely to miss it or to transfer out of your savings account. This is one of the easiest ways that you can save.
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Use a Separate Online Savings Account
If you have trouble leaving the money in your savings account, consider using a savings account offered by an online bank such as ING. This will slow down the transfer rate, and help you to budget much more carefully. Additionally, the interest rate is usually higher. This is agreat way to protect your savingsso that you do not continue to dip into it.
You may consider taking advantage of Bank of America's Keep the Change program or something similar that your bank offers you. This should not be your only savings method since you will not be saving high dollar amounts, but it can add a little bit of savings. It is important to realize that every little bit counts. Look for other savings incentives that your bank may offer.
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Scale Back Your Spending
You can also choose one luxury item to give up or cut back on and put that money in the bank. This item could be a small ticket item that adds up quickly-think daily coffee trips. Or it could be a more expensive luxury such as your weekly massage. If you cut back or quit altogether you will find the savings do add up. You may want to consider cutting out one of these budget busters to help increase the amount you save.
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Cut Your Food Bill
Food is a necessity and many people assume they cannot save anymore on their groceries or food when they are looking to save money. There are steps you can take like menu planning, changing grocery stores, and cooking at home. The more that you can save, the more you will have to apply to your goals. Even just cooking a home more can help you find significant savings and make it easier to save money over time.
Use budgeting apps to find out where you're money is going and look for places where you can cut back. Automate your saving. Automate your saving by setting up a direct deposit from your paycheck into a high-yield savings account or money market account. Pay off debt.
Use budgeting apps to find out where you're money is going and look for places where you can cut back. Automate your saving. Automate your saving by setting up a direct deposit from your paycheck into a high-yield savings account or money market account. Pay off debt.
The premise of the 30-day savings rule is straightforward: When faced with the temptation of an impulse purchase, wait 30 days before committing to the buy. During this time, take the opportunity to evaluate the necessity and impact of the purchase on your overall financial goals.
The seven percent savings rule provides a simple yet powerful guideline—save seven percent of your gross income before any taxes or other deductions come out of your paycheck. Saving at this level can help you make continuous progress towards your financial goals through the inevitable ups and downs of life.
Here are some tips for getting into the habit of saving.
Set goals. Set savings goals that motivate you, like saving up for a house or going on a dream vacation, and give yourself timelines for reaching them.
Immediately save your additional income so you don't spend it all. Another way that is more instant and makes it easier for you to save aggressively is when you get additional income, for example holiday allowances (THR) and bonuses from the company. Before you spend it, immediately save most of the additional income.
One of the easiest ways to double $1,000 is to invest it in a 401(k) and get the employer match. For example, if your employer matches your contributions dollar for dollar, you'll get a $1,000 match on your $1,000 contribution.
One example is the $1,000/month rule. Created by Wes Moss, a Certified Financial Planner, this strategy helps individuals visualize how much savings they should have in retirement. According to Moss, you should plan to have $240,000 saved for every $1,000 of disposable income in retirement.
Canceling unnecessary subscriptions and automating your savings are a couple of simple ways to save money quickly. Switching banks, opening a short-term CD, and signing up for rewards programs can also help you save money. Making a budget and eliminating a spending habit each day can help lead to long-term savings.
Introduction: My name is Kerri Lueilwitz, I am a courageous, gentle, quaint, thankful, outstanding, brave, vast person who loves writing and wants to share my knowledge and understanding with you.
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